Danone CEO: $1.2bn Huel Acquisition Fuels Sustainable Growth
Danone has announced plans to acquire the UK-based meal replacement company Huel as part of a business strategy to expand its portfolio into the functional nutrition market.
The US$1.2bn sale marks a new stage in Danone’s Renew Danone strategy, a strategic model designed to sustain profitable growth.
Danone’s CEO Antoine de Saint-Affrique has outlined plans to combine both company’s strengths, with Huel’s product range and digital marketing partnering with Danone’s global reach and expansion efforts.
“Combining [Huel’s] range and best-in-class digital capabilities with Danone’s global reach and deep nutritional expertise offers exciting opportunities into the new and fast-growing nutritionally complete space, in line with our Renew Danone strategy,” Antoine says.
“We look forward to learning from one another and unlocking new opportunities and growth for both businesses.”
New growth opportunities
Danone says the acquisition will strengthen its presence in the functional nutrition market, while also broadening the range of products it offers, including meal-replacement milkshakes, high-protein meals and on-the-go options.
The company points to Huel’s established market presence in Europe and its strong approach to consumer engagement and market as key reasons behind the acquisition, in particular noting Huel’s successful online presence and digital sales.
According to Antoine, Huel’s success will act as a learning tool for creating new growth opportunities for both companies and support Danone’s plans to streamline its portfolio management under the Renew Danone strategy.
This strategy is designed to prioritise acquisitions like Huel’s that align with Danone’s sustainable growth plans in order to optimise the company portfolio for the long term.
Renew Danone outlines three core “resets” that will establish the company growth model: cultural, executional and financial, and business. These will enable the company to build on and improve business fundamentals and establish its place as a leader in the global health and nutrition market.
Huel CEO James McMaster mirrors Danone’s growth ambitions, saying: “With Danone, we will now have the infrastructure, distribution and R&D capability to go further, into new markets and to more people, as demand for convenient, complete nutrition continues to grow.”
Strategic long-term assets
With Huel reporting a revenue of £250m (US$335m) in 2025, the acquisition could prove a long-term strategic asset to Danone.
According to Future Market Insights, the market for functional nutrition products was estimated to be worth US$5.9bn in 2025 and is projected to grow to US$8.9bn by 2032.
Danone currently stands as one of the world’s largest food companies, with operations spanning dairy and plant-based products, bottled water and specialised nutrition and more €27bn (US$31bn) in annual sales.
The company is also positioned to benefit from trends like the rise of GLP-1 weight loss drugs, which have increased demand for protein-rich and nutritionally-dense products.
The company has explored ways to attract consumers undergoing weight loss with products designed to retain muscle mass during body recomposition, such as its yoghurt drink Oikos.
In an official press release on the acquisition, Danone states: “Combining Huel with Danone’s scale, capabilities and global reach will accelerate growth, innovation and international expansion.
“Huel’s mission to make nutritionally complete, convenient, sustainable food, aligns closely with Danone’s purpose of bringing health through food to as many people as possible.”
